Originally Posted by a burrito
If you took off spacers did the rebalance on the wheel and your car is shaking then its not your alignment or your wheel balance; you got a shitty install. If I were you, i'd take it to another reputable shop and have them take it out and reinstall it. You kind of answered your own question, "the suspension was not setup properly to begin with." you have sleeve overs which means the only adjustment is the collars to adjust your height. Even at that point things shouldn't shake.
The problem right now is that I'm too far away from any reputable M3 suspension expert. EAS is over 12 hours away. I'm stuck dealing with the local BMW dealership which is an absolute nightmare. I feel that I'm going to loose money fast doing the process of elimination. They are talking about changing the tires at roughly $400 a piece as a solution.
At this point I'm looking at various options. Leaving things alone for now and plan a trip to EAS and have a real Coilover installed with a proper setup and alignment. Then at the same time, what if there is something else going on? Out of frustration I have even contemplating getting rid of the M3 as it is not a pleasure to drive right now.